F.A.Q.'s
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The following list is by no means exhaustive but we hope it
answers the most frequently asked questions.
What is a Remortgage?
What is a Secured Loan?
What is a Bridging Loan?
What is an Interest Only Mortgage?
What is the Financial Services Authority?
What Fees can we expect?
What is an Early Repayment Charge?
What is the difference between a Fixed Rate and a
Variable Rate?
What is a Buy-to-Let?
What is a Right-to-Buy?
Valuations.
Credit Reference Agencies.
Whether you are moving home or buying for the first time. Finding a
mortgage can be a confusing and stressful experience. So let us
help you in finding the mortgage that suits your needs and
circumstances.
Remortgage
There are many reasons for remortgaging. Coming to the end of your
tie-in period, wanting a better rate or needing to raise additional
capital for home improvements or whatever purpose. We can help you
in choosing a suitable product.
Buy to Let
If you are considering purchasing a property to rent out or have an
existing property or portfolio of properties and want to remortgage
or expand your investments let us search the market for the best
product.
Self Certify
For persons where proof of income is not readily available. There
are mortgage products available which we can discuss.
Commercial
Whether buying a new premises or releasing equity we will be able
to offer you a solution to your needs.
Interest Rate types
Variable rate - The interest rate that you pay
rises and falls in line with the Lenders Standard Variable Rate
(SVR). This may also be used in conjunction with cashbacks or short
term discounts of the rate.
Cashbacks - A Cashback Mortgage provides a lump
sum, payable on completion of the mortgage. The amount is
determined largely by the size of the mortgage. The borrower can
use the money in any way they choose. This is simply offered as an
incentive by the lender.
Discounts - This is also used as an incentive by
some lenders and gives a stated discount from the lender's variable
rate for a given time period after which you will revert to the
SVR.
Fixed rate - The interest that you pay is fixed
for a given period, no matter what happens to the variable rate.
The rate will normally revert to the lenders variable rate after
the agreed term.
Capped Rate - The interest rate guarantees a
maximum rate that you will pay. If the rate rises you will still
only be charged up to a maximum of the capped rate but, however, if
the variable rate reduces then you will automatically be switched
to the lower rate.
Tracker - The interest rate you pay is linked to
the Bank of England's Base Rate (set monthly) or some other base
rate set independently from the lender. It will track this rate and
so your payments will move up or down depending on the rate over a
given time. The rate normally reverts to the lenders variable rate
after the agreed term.
Early Redemption Penalties - if you redeem your
mortgage before the end of the stated term you may have to pay
penalties in excess of the balance outstanding. This is
particularly likely if you have been offered an incentive as per
some types described above. We will confirm the relevant penalties
applying to any mortgage in our quotation and illustration. They
will also be specified in the lenders offer of advance.
Higher Lending Charge (HLC) - If your mortgage
exceeds 75% of the value of the property, you may have to pay a fee
for the Higher Lending. This is arranged by the lender to cover
them (NOT YOU) against any losses which may arise should you fail
to meet repayments and there is not enough value in the property to
pay off the mortgage on repossession. Many lenders do not make a
charge until you exceed 90% of the value of the property and if
there is a charge this will be confirmed in your
illustration.
Valuations
To enable you to proceed with a mortgage, you will be required to
pay for a valuation of the property which will confirm to the
lender if the property is sufficiently and accurately valued for
their lending purposes. There are basically three types of report
:
Lenders Valuation - this tells the lender if the
property is suitable as security for the mortgage. This will be
carried out by an independent professional surveyor but the
inspection is limited in scope. The surveyor will inspect the
property's general condition and give an opinion on the value of
the property. The report may not reveal serious defects and it is
important to note that you will not be covered for any faults that
existed at the time you bought the property. In extreme cases a
serious defect may make the property worthless. It is generally
recommended, particularly on older properties, that a more in depth
report is obtained.
Home-Buyers Report - this report is more in depth
and enables you to gain an expert's opinion of the price and
condition of the property. Using a basic checklist the surveyor
considers the condition of the property. It is generally cheaper to
arrange this survey combined with the lenders valuation. However,
these reports have their limitations and do not include areas that
are not easily accessible, such as under floorboards.
Full Structural Survey and Valuation - this is the
most comprehensive report and valuation. It may take several days
to obtain, but you will receive a complete description of the
structure, a list of major and minor defects and a guide on how
much essential repairs might cost. In view of the legal
implications of negligent surveys, surveyors will attempt to
catalogue every conceivable fault each of which should be
considered depending on their seriousness.
Credit Reference Agencies
When you sign an Application and Authority form, this will allow
the prospective lender to make enquiries to any Credit Reference
Agency and a record that this search was carried out will be shown
on any later search. The lender may register information about you
and the conduct of any account with a Licensed Credit Reference
Agency (information thus registered is used to help make credit
decisions or occasionally for fraud protection).
Repaying your Mortgage
You can select any term to repay your mortgage normally between 5
and 30 years. Obviously the shorter the term, the higher the
monthly payment and therefore it is necessary to select a term
where you feel comfortable with the monthly payment. We will always
discuss a range of quotations and can provide illustrations upon
request.
Once you have selected a mortgage product, you have to choose the
payment method.
Repayment - with a repayment mortgage, your
monthly payment covers the interest and a portion of the capital
borrowed so that the amount outstanding is reducing over time and
at the end of the term the loan will be repaid in full.
Interest Only - with an interest only mortgage,
you only pay the interest on the money borrowed. Therefore is very
important that you ensure that suitable investment or saving plans
are in place to repay the loan at the end of term (examples
include; endowment policy, ISA, PEP or pension plan).
Lending into Retirement - if your mortgage term
extends past your normal retirement date, then you will need to
prove that suitable income streams will be coming in to repay the
mortgage. If not, you will need to reduce the term of the
mortgage.
Mortgage Process
Step 1 - Submit a 'call back' or an enquiry
application. Alternatively call us on 02380 263332. Once the
information is received we will forward our details and Initial
Disclosure Document and contact you to obtain a full Fact Find to
establish your current situation and requirements.
Step2 - We shall search the mortgage market for
the best product that suit all your needs and circumstances. An
agreement in principle with a lender may be taken at this stage. We
will send a KFI (Key Facts Information) document outlining clear
details of the selected products to include all costs and terms.
Any queries and requirements will be discussed and sent to
you.
Step3 - Once you complete the application and
return to us we shall submit to the relevant lender. A valuation on
your property will generally be needed.
Step 4 - Once the application has been
underwritten by the lender and agreed, a formal mortgage offer will
be issued.
Step 5 - The final process now moves to
conveyancing where the solicitors or conveyancers will tie up all
the legalities of the mortgage deal and arrange a completion
date.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS
ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT